Gold price holding gains, ignoring muted inflation pressures Neils Christensen Neils Christensen

74
0
SHARE

Stripping out volatile food and energy prices, core inflation rose in line with expectations, increasing 0.2% last month, following December’s rise of 0.1%. Annual core inflation rose 2.3% last month the report said.

Gold prices are holding steady as investors ignore U.S. economic data and focus on the potential impact the spreading coronavirus could have on global growth. April gold futures last traded at $1,576.40 an ounce, up 0.31% on the day.

Looking at the some of the components of the report, housing costs had the biggest impact on consumer prices in January. Housing costs more than offset lower energy prices.

The report said that gasoline index fell 1.6% last month.

Some analysts note that the latest inflation data is positive for gold in the near-term because it supports the Federal Reserve’s accommodative monetary policy. However, overall some analysts note that this report shows that inflation isn’t a major focus for the market.

“I don’t think the market is going to shift its focus to inflation for a few months,” said Adam Button, managing director for Forexlive.com